BREXIT AND FINANCIAL SECTOR JOBS
There is no denying that the threat of Brexit and its impact on the financial sector is a concern for many people and businesses these days. Many threats have been made about leaving the UK but in figures provided by EY, the number of firms who say they plan to exit remain relatively low. Obviously losing any company is unfortunate and should be avoided if at all possible but the EY Financial Services Brexit Tracker suggests that only 34%, or 75 of 222, companies have confirmed plans to move some or all of their staff or operations out of the UK and into the EU.
When the same study was undertaken in March of 2018, the return was 32% and in the previous quarter, it was 31%. So over time, more firms are confirming plans to leave the UK but it is a small trickle as opposed to a deluge.
It appears as though Dublin and Frankfurt are the leading areas for relocation so far, with the Irish capital attracting 21 firms with the German city picking up 12 firms so far.
SOME BIG NAMES HAVE SUGGESTED THEY ARE MOVING
Examples of firms who are expected to move, according to recent rumours, are:
- HSBC who are set to move up to 1,000 jobs over to France
- JP Morgan who could move around 1,000 front office jobs, and back office roles, to various locations across the EU
- Goldman Sachs intends on expanding many of their offices in Europe while their Frankfurt staff is expected to double in size
Omar Ali is the UK financial services Leader at EY, and he released a statement saying: "Most firms are yet to iron out all the finer details, but there is evidence to suggest they are continuing to make definitive decisions, with many recognising that the transition is not yet locked in, and may not be until very late in the day. We are seeing more and more companies name multiple locations, unsurprisingly focused on those where they have existing operations or there is an existing financial services infrastructure to slot into.”
LONDON WILL REMAIN A LEADING GLOBAL FINANCIAL CENTRE
Of course, in busy times, people just want headline quotes and quick answers, which means the last sentence said by Omar Ali is likely to be of most comfort to people working in or looking for work in the financial sector. Ali said; “This points to the fact that it is unlikely we'll see one pre-eminent financial services hub emerge in Europe, and London will remain a leading global financial centre.”
It can only be hoped that the importance of London with respect to financial institutions remains in place. It is likely that there will be many other issues surrounding Brexit so it is best that candidates, employees and employers remain in touch with the latest news. At City Wharf Financial Recruitment, we look to provide you with everything you need to know in the front office and financial sector job market, so you can rely on us to keep you suitably informed of what is happening.